Deal sells one-year notes with warrants for 3.43 million common shares
By Devika Patel
Knoxville, Tenn., Feb. 1 – Echo Therapeutics, Inc. said it has arranged a $5,145,000 private placement of secured convertible notes. Newbridge Securities Corp./LifeTech Capital is the agent for the deal, which raised $1,787,000 on Jan. 29.
The one-year notes are convertible into common shares at $1.50 per share.
The investors also will receive warrants for 3.43 million shares, with warrants for 1,191,333 shares issued in the first tranche. The warrants are each exercisable at $1.50 for 18 months.
The conversion price and strike price are a 37.62% premium to the Jan. 28 closing share price of $1.09.
Proceeds will be used as working capital, for research and development and for other general corporate purposes.
Iselin, N.J.-based Echo Therapeutics is a medical device company.
| Issuer: | Echo Therapeutics, Inc.
|
| Issue: | Secured convertible notes
|
| Amount: | $5,145,000
|
| Maturity: | One year
|
| Conversion premium: | 37.62%
|
| Conversion price: | $1.50
|
| Warrants: | For 3.43 million shares
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | $1.50
|
| Agent: | Newbridge Securities Corp./LifeTech Capital
|
| Announcement date: | Feb. 1
|
| Settlement date: | Jan. 29 (for $1,787,000)
|
| Stock symbol: | Nasdaq: ECTE
|
| Stock price: | $1.09 at close Jan. 28
|
| Market capitalization: | $12.24 million
|
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